Kerala High Court
Kerala State Cashew Development ... vs Regional Provident Fund Commissioner, ... on 3 March, 2025
Author: Murali Purushothaman
Bench: Murali Purushothaman
2025:KER:17744
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
MONDAY, THE 3RD DAY OF MARCH 2025 / 12TH PHALGUNA, 1946
WP(C) NO. 8161 OF 2025
PETITIONER:
KERALA STATE CASHEW DEVELOPMENT CORPORATION LTD, REP. BY
ITS MANAGING DIRECTOR
P.B.NO.13,CASHEW HOUSE, MUNDAKKAL, KOLLAM, PIN - 691 001.
BY ADVS.
SRI.VIPIN P.VARGHESE, SC, KERALA STATE CASHEW,
DEVELOPMENT CORPORATION LTD.
ADARSH MATHEW
ANIRUDH G. KAMATH
AGUSTHO NORBERT
ANNA B.
MEGHA MADHAVAN
RESPONDENT:
REGIONAL PROVIDENT FUND COMMISSIONER, KOLLAM
EMPLOYEES PROVIDENT FUND ORGANISATION, REGIONAL OFFICE,
PONNAMMA CHAMBERS - I, PARAMESWAR NAGAR, KOLLAM,
PIN - 691 001.
BY ADVS.
PIRAPPANCODE V.S.SUDHEER V.S
AKASH S.(K/980/2008)
GIRISH KUMAR M S(K/001593/2018)
RICHU THERESA ROBERT(K/002427/2021)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.03.2025,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO.8161 OF 2025 : 2 :
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JUDGMENT
The petitioner is a Corporate entity fully owned by
the Government of Kerala and operates 30 cashew
factories across the State. The respondent is an
authorized officer of the Employees' Provident Fund
Organization with the authority to impose interest under
Section 7Q of the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952 (hereinafter referred
to as 'the Act').
2. This writ petition is filed seeking installment
based remittance of interest amounting to Rs.9,05,319/-
levied under Section 7Q of the Act in respect of Factory
No.27 of the petitioner at Eravipuram, Kollam for the
wage month period from 04.05.2014 to 31.08.2024 (wage
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month 03/2014 to 06/2023) by the respondent as per
Ext.P1 proceedings.
3. According to the petitioner, the delay in the
payment of contributions under the Act is solely due to
the financial doldrums faced by the petitioner and there
is no willful non-compliance. It is stated that the entirety
of funds available in the Corporation's current account
represents the sole Working Capital currently allocated by
the Government. Any coercive measures taken to attach
funds from this account would result in substantial loss
to the Corporation, closure of factories and consequent
loss of livelihoods for over a thousand workmen.
4. The learned Standing Counsel for the Employees
Provident Fund Organisation submits that non payment
of contributions is willful and despite repeated reminders,
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the petitioner did not remit the dues and it was in such
circumstances interest under Section 7Q was levied. The
learned counsel however submits that, taking into
consideration the fact that the petitioner is a State Public
Sector Undertaking, a breathing time can be granted to
the petitioner for remitting the dues.
5. Taking note of the fact that the petitioner is a
State Public Sector Undertaking and there is no reason to
doubt the bona fides of the plea regarding financial
constraints, and the plea that petitioner has been making
Provident Fund remittances otherwise promptly, to
provide a succor to the petitioner so that the petitioner
may remain in business, I am of the view that
installment facility can be granted to the petitioner to
pay the interest levied under Section 7Q of the Act.
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Accordingly, this writ petition is disposed of
directing the petitioner to remit the interest levied under
Section 7Q of the Act as per Ext.P1 in 15 consecutive
and equal monthly installments commencing from
01.04.2025. It is made clear that if the petitioner
commits default of two consecutive installments, the
respondent will be at liberty to proceed against the
petitioner in accordance with law.
Sd/-
MURALI PURUSHOTHAMAN
JUDGE
SRJ
2025:KER:17744
APPENDIX OF WP(C) 8161/2025
PETITIONER'S EXHIBITS
EXHIBIT P1 THE TRUE COPY OF THE ORDER NO.
KR/KLM/1187/PENAL DAMAGES/DIARYNO.74/2024
DATED 25.10.2024 ISSUED BY RESPONDENT.
EXHIBIT P2 THE TRUE COPY OF THE PROFIT AND LOSS
STATEMENTS OF 2014-2015.
EXHIBIT P3 THE TRUE COPY OF THE PROFIT AND LOSS
STATEMENTS OF THE YEAR 2015-16 SHOWING THE
LOSS FACED BY THE CORPORATION.
EXHIBIT P4 THE TRUE COPY OF THE PROFIT AND LOSS
STATEMENTS OF THE YEAR 2016-17.
EXHIBIT P5 THE TRUE COPY OF THE PROFIT AND LOSS
STATEMENTS OF THE FISCAL YEAR 2017-2018 OF THE
PETITIONER.
EXHIBIT P6 THE TRUE COPY OF THE PROFIT AND LOSS
STATEMENT PERTAINING TO THE YEAR 2018-2019.
EXHIBIT P7 THE TRUE COPY OF THE STATEMENT OF PROFIT
AND LOSS PERTAINING TO THE FISCAL YEAR 2019-
2020.
EXHIBIT P8 THE TRUE COPY OF THE STATEMENT OF PROFIT
AND LOSS OF THE SAID YEAR.
EXHIBIT P9 THE TRUE COPY OF THE STATEMENT OF PROFIT
AND LOSS OF THE YEAR 2021-2022.
EXHIBIT P10 THE TRUE COPY OF THE PROVISIONAL STATEMENT
OF PROFIT AND LOSS FOR THE YEAR 2022-2023.
EXHIBIT P11 THE TRUE COPY OF THE JUDGMENT DATED
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19.12.2024 IN W.P(C) 45455 OF 2024 PASSED BY THIS
HON'BLE HIGH COURT.
